14. You want to estimate the before-tax cost of debt, r_d, for Dahlia Corp. The company has semi-annual coupon bonds outstanding with a market price of $1,125.00. The bonds have coupon interest rate of 12%, a face value of $1,000, and a maturity of 14 years. If flotation costs are 5%, what is Dahlias before-tax cost of debt?

Group of answer choices

a. 10.29%

b. 11.69%

c. 11.03%

d. 12.21%

e. 12.71%